Mechanism Capital: Going long on ETH/BTC, SOL/BTC, or SOL/ETH is a better trading strategy in a bullish market

Co-founder of Mechanism Capital, Andrew Kang, said that in a bullish environment, the better trades are to repeatedly attempt long positions on ETH/BTC and SOL/BTC (or SOL/ETH).

During the first 6 to 7 years since Ethereum's inception, although there were many uncertainties, Ethereum was an attractive risk asset for many Bitcoin holders. As a result, many Bitcoin holders were willing to convert their holdings into Ether. However, over time, Ether has gradually transitioned from being a risk asset to a safe haven asset. The proportion of investment between Ethereum and Bitcoin has become fixed and the number of people willing to convert has decreased.

Andrew Kang believes that recent innovations such as layer-two networks and modular technology have actually brought heavy pressure on Ethereum during market cycles with risk aversion.

Andrew Kang stated that SOL not only does not face these same issues but also crosses the divide by becoming an enduring blue-chip L1 project tested over multiple cycles. Its current high growth is enough for people to allocate resources towards it. Conservative large-scale investors who previously felt secure only with Bitcoin and Ethereum now see Solana as a simple and secure new choice. It is during this phase when Solana transitions from an emerging asset to a major or foundational asset that provides an investment opportunity not to be missed. In 2023, even if ETH/BTC volatility undergoes secular changes, trading SOL/BTC will still be excellent.